Minister pushes Greece new deal bid

Greece’s new anti-austerity finance minister is heading to London for talks with George Osborne as he attempts to build support across the European Union for a new deal for the struggling nation.

Yanis Varoufakis secured backing from France for his country’s bid to renegotiate its debt during discussions in Paris yesterday, where he began a whistle-stop tour, meeting European counterparts.

But German chancellor Angela Merkel has made it clear she will not allow Greece’s debts to be cancelled, insisting substantial cuts have already been made.

Mr Osborne said: “I welcome this opportunity, so soon after the Greek election, to discuss face to face with Yanis Varoufakis the stability of the European economy and how to boost its growth.”

The election of Syriza last week sent shockwaves through Europe. Alexis Tsipras, leader of the radical left-wing party heading the new coalition, immediately demanded a renegotiation of Greece’s 240 billion-euro (£179 billion) international bailout deal .

Prime Minister David Cameron initially responded to Syriza’s rise to power by warning it would increase “economic uncertainty across Europe” but later offered the new leader UK help on tax collection.

Mr Varoufakis, who studied at the University of Essex, has ruled out a new wave of bail-out support, insisting his government was focused on ending the “addiction” that has seen Greece ” craving the next dose”.